Surabaya has always been known as a trading city. Indian, Chinese and Arab merchants brought their goods to the city by the Kalimas River. Then some of these traders decided to form their own communities and settled in areas close to the river.

They lived in harmony with the indigenous residents and many married locals. This acculturation led to the establishment of the Arabic settlement area in Ampel and in Pecinan (Chinatown).

Today, Surabaya has developed into an industrial and trading hub. In 2003, the city's average economic growth was 4.8 percent, and this year that figure is expected to rise to 5.5 percent. Projected figures for 2005, 2006 and 2007 are 6.5 percent, 7.6 percent and 8.2 percent, respectively.

The period between 2003 and 2004 were witness to the bright prospects for trading in the city, with shopping centers and retail shops mushrooming.

New office buildings were also put up in 2003 and 2004, such as Graha Wonokoyo and Menara Standard Chartered. Older office compounds include Plaza Bumi Mandiri, Plaza BRI and Wisma Dharmala Surabaya.

Ray White property consultant Edy Suwanto said the large number of malls and shopping centers in Surabaya indicated that the prospects for the property business in Surabaya were bright.

"Highway facilities and the construction of the Suramadu (bridge connecting Surabaya and Madura) greatly support the retail business in Surabaya," he said.

In his opinion, the presence of a large number of shopping centers also indicates the stronger purchasing power of the community.

Eighty percent of the some 1,000 units in the six-floor DTC, which occupies 45,000 square meters of land and will be opened for operation on Oct. 31, 2004, have been sold. Each unit costs between Rp 80 million and Rp 900 million.

"This shows that the market for trade centers is still bright in Surabaya. Please note that the buyers have come from as far away as Ujung Pandang and places in Kalimantan," he said.

Unfortunately, the intensified construction of shopping centers and industrial buildings has led to the demolition of many cultural sites and increased pollution in the city.

In 1998, the number of motorized vehicles in the city stood at 923,633 and in 2000/2001 that figure was down to 909,131. However, in 2002/2003, the figure rose by some 50 percent from the previous year.

This increase in the number of motorized vehicles has led to an imbalance between the condition of the roads and the number of vehicles on these roads.

Data compiled by the Surabaya traffic and highway service shows that every day 11,370 motorized vehicles pass along Jl. A. Yani, the city's main street.

This means about 3,000 motorized vehicles each hour or 50 every minute pass along the street. However, the street was designed to accommodate no more than 10,164 motorized vehicles a day. Similarly, Jl. Wonokromo, which also can accommodate 10,164 motorized vehicles a day, sees 11,126 motorized vehicles pass along it every day.

As a result, pollution has become a major problem for Surabaya. A report on the results of air pollution measurements in the city found that the city's air can be considered good only for 27 to 51 days of the year.

This means that most of the time (83 percent of the year), Surabaya residents breathe polluted air. Most (some 70 percent) of this pollution comes from motorized vehicles. Only 30 percent of the pollution is attributed to industrial and household activities.

Despite the pollution, Surabaya residents believe the city is a good place to live, earn a living and invest. A survey of consumer expectations conducted by Bank Indonesia backs up this statement.

Between March 2003 and March 2004, the consumer confidence index was at 91 points, the consumer expectations index stood at 95 points and the economic condition index had passed 87 points.